Rehiring of Former Employees – Loyalty or Lack of Creativity?

The Re-tension People
– Return, Re-hire, Retain –

Better Growth Opportunity, Unprofessional or Rude Manager, Less Compensation, Unfriendly Policies and Culture, Directionless Leadership/Management, Higher Education and etc. etc. are just a tip of the iceberg reasoned for employees’ exit from the organization. Exit interview practices & related surveys across the length and breadth of the employography also confirmed the said reasons & also lime lighted many other influencing factors that drive this ‘emotional conclusion’ of decision to part ways with their employers.

 And to balance the guilt, Management also does the possible in their hand to retain their best talents and yet the employee decides to leave the company to pursue own dreams. Every such separation generally has a cooling period.

 In spite of all this, it is culturally believed that ‘all relationships have a cosmic connection of coming together, progress, separate & at times re-connect to culminate’. For some it may sound philosophical. But the journey of life has time and again proved that ‘In the evenings of life…..each one of us realize that Philosophy is Fact’. This is all about creation & creativity. But at the same time, one has to understand that it is equally important to break the monotony…..either in thought or practice or people failing which the race doesn’t last long.

 Having a culture to rehire former employees is an appreciable practice as it breads in loyalty and trustworthiness. However, the fact is that every former employee cannot be re-hired. As such, who to hire and when to hire are some critical elements that every company needs to address in its policies or Standard Operating Procedures [SOP’s].

Let us now read a story of one such organization that was smitten by its “re-hiring” practice.

Mumbai Manufacturing India Private Limited [MMI]

MMI is 25 years old & a 100 Million USD company manned by 500 employees. For the last 10 years they have stagnated in growth. They are barely able to meet their yearly targets even. The management attributes the poor economy, entry of new players in the market, and increase in material cost as reasons for their current state. They made every attempt to improve their processes and SLA’s. However, nothing helped them in improving their profitability.

Consequent to this, MMI hired External Management Consultancy [EMC] to help identify reasons for their poor growth. They did an extensive alternative research & interviews of three months on various aspects of people policies & practices. In the process, they noted that MMI does have a re-hiring policy in place which says that an absconded or terminated employee cannot be rehired. It also has a provision for a cooling period of THREE years between date of separation and date of rehire. However, the said policy is being overlooked by the MMI management, who finds it difficult to explore new ideas and new ways of working. They seem to be too comfortable in their comfort zone.

This created a feeling that some people seem to be using this company as dumping yard & the management of the company has to be blamed for creating such culture. EMC submitted its report and the report states that the company is struggling with creativity and out of the box thinking as MMI is not allowing itself to explore new ideas and think differently. Every time they get an opportunity to let in fresh talent, different perspectives and new ideas, they step back and return to old ways of thinking.

Few cases of rehiring…




The MMI Approach – Creativity @ Stake

These are just few cases. There are at least 100 other such cases. Having read the story, you may like to share your thoughts / views on the following:

  1. Did MMI kill creativity by re-hiring Ms. Margret?
  2. Is MMI risk averse (or) do they like to play safe within their comfort zone?
  3. The why & what of MMI’s culture & approach of management.
  4. If it were you, how would have you managed the scenario differently from MMI?

Composed By: Sanjeev Himachali

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